The question on the table is:
whether Germany is willing to save the EU

The success of the EU is now the sole responsibility of Germany. A Merkel has poorly communicated the euro crisis to the German populace.

The leading Euro member is now recognizing that writing blank cheques for the poorer members may not be the best avenue. However, letting the PIIGS default is not an option, as this would undermine the basic concept of the Union. Alternatively larger and more elaborate bail-outs may be the cost of saving the Union.

Europe's answer to the crisis: Develop ways to enforce harmonized fiscal policy. Yeah, that will work!

One of the root problems of the Euro-Zone as a viable single currency area: the lack of labor mobility.

In the United States, if you live in one state, and that state faces economic decline - you can readily move to another state in search of employment. Unemployment shoots up in Massachussetts? Move to North Dakota, where there's a hiring spree.

The same doesn't work in Europe. Lost your job as a history teachor in Greece, move to Berlin and...oh, wait, you don't speak German?

I have still yet to understand why they can't just let Greece (and potentially others) default. It is not, in theory, necessary to bailout a member state in order to maintain the Euro.

The equivalent to the Euro-Zone currency area would be the United States Dollar-Zone, with 50 member states.

In the event one US state faces default on its bonds, it is NOT required that the Federal Government bail them out in order to keep the Dollar Zone from collapsing.

Granted, the defaulting State would face serious short-term consequences, but its necessary, in the grand scheme of things, for that pain to be felt. Otherwise, you end up with moral-hazard.

The fact is, investors messed up in Europe - they lent Greece way too much. They somehow figured all bonds issued in Euros are equal. As if it makes as much sense to lend $100 Billion to the state of Alabama as it does to lend it to the state of New York.